COMPLETES THE ACQUISITION OF BERRY AVIATION
HOUSTON, Aug. 4, 2026 /PRNewswire/ --
Second Quarter Highlights
-- Total revenues of $411.8 million in Q2 2026 compared to $388.7 million in
Q1 2026
-- Net income of $21.2 million, or $0.70 per diluted share, in Q2 2026
compared to net income of $13.1 million, or $0.44 per diluted share, in
Q1 2026
-- Adjusted EBITDA(1) in Q2 2026 was $79.8 million compared to $59.3 million
in Q1 2026
-- Completed the acquisition of Berry Aviation, expanding the Company's
Government Services offering
-- Affirmed 2026 Adjusted EBITDA outlook range of $295 - $325 million and
updated 2026 segment guidance
Bristow Group Inc. (NYSE: VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of $21.2 million, or $0.70 per diluted share, for the quarter ended June 30, 2026 (the "Current Quarter") on total revenues of $411.8 million compared to net income attributable to the Company of $13.1 million, or $0.44 per diluted share, for the quarter ended March 31, 2026 (the "Preceding Quarter") on total revenues of $388.7 million.
The following table provides select financial highlights for the periods reflected (in thousands, except per share amounts). A reconciliation of net income to EBITDA and Adjusted EBITDA, operating income to Adjusted Operating Income and net cash provided by (used in) operating activities to Free Cash Flow and Adjusted Free Cash Flow is included in the "Non-GAAP Financial Measures" section herein.
Three Months Ended
June 30, March 31,
2026 2026
---------------- ---------------
Total revenues $ 411,755 $ 388,705
Operating income 39,576 34,675
Net income attributable to Bristow Group
Inc. 21,154 13,106
Basic earnings per common share 0.71 0.45
Diluted earnings per common share 0.70 0.44
Net cash provided by (used in) operating
activities 41,076 (8,250)
Non-GAAP(1) :
Adjusted Operating Income $ 71,894 $ 52,853
EBITDA 62,405 54,777
Adjusted EBITDA 79,808 59,275
Free Cash Flow 34,285 (12,609)
Adjusted Free Cash Flow 35,807 (11,766)
(1) See definitions of these non-GAAP financial measures and the
reconciliation of GAAP to non-GAAP financial measures in the Non-GAAP
Financial Measures section further below.
"We completed the acquisition of Berry Aviation last month, adding differentiated special mission capabilities and long-standing relationships with U.S. defense and government customers, further strengthening Bristow's Government Services offerings," said Chris Bradshaw, President and CEO of Bristow Group. "We are pleased to affirm Bristow's Adjusted EBITDA guidance range for 2026, despite macro uncertainties and continued supply chain challenges. The conviction in this outlook is a testament to the complementary nature of Bristow's business segments and the benefits provided by the significant geographic and customer diversity in our business model."
Sequential Quarter Results
Offshore Energy Services
Three Months Ended
------------------------
June 30, March 31, Favorable
($ in thousands) 2026 2026 (Unfavorable)
----------- ----------- --------------------
Revenues $ 261,618 $ 254,333 $ 7,285 2.9 %
Operating income 46,053 35,720 10,333 28.9 %
Adjusted Operating Income 66,537 50,156 16,381 32.7 %
Operating income margin 18 % 14 %
Adjusted Operating Income
margin 25 % 20 %
Revenues from Offshore Energy Services were $7.3 million higher in the Current Quarter. Revenues in Europe were $5.9 million higher primarily due to higher rates and higher fuel revenues, partially offset by lower utilization. Revenues in the Americas were $1.2 million higher primarily due to higher fuel revenues driven by higher fuel prices, partially offset by lower utilization. Revenues in Africa were consistent with the Preceding Quarter.
Operating income from Offshore Energy Services was $10.3 million higher in the Current Quarter primarily due to the higher revenues, lower operating expenses of $4.3 million, higher earnings from unconsolidated affiliates of $2.2 million and lower general and administrative expenses of $0.5 million, partially offset by higher depreciation and amortization expense of $4.0 million.
Repairs and maintenance costs were $7.8 million lower in the Current Quarter primarily due to higher vendor credits. Personnel costs were $6.3 million lower primarily due to seasonal personnel cost variations in Norway. Fuel costs were $6.5 million higher due to higher global fuel prices, partially offset by lower flight hours. Other operating costs were $3.4 million higher primarily due to higher freight costs, reimbursable expenses, lease costs and training costs. Earnings from unconsolidated affiliates were $2.2 million higher in the Current Quarter primarily due to the timing of dividends received. Depreciation and amortization expense was higher primarily due to accelerated depreciation of assets related to a leased facility in the U.S. and capital spare parts associated with S76D medium helicopters. The decrease in general and administrative expenses was primarily due to seasonal personnel cost variations in Norway.
Government Services
Three Months Ended
------------------------
June 30, March 31, Favorable
($ in thousands) 2026 2026 (Unfavorable)
----------- ----------- ----------------------
Revenues $ 112,234 $ 107,870 $ 4,364 4.0 %
Operating income (loss) (2,145) 943 (3,088) nm
Adjusted Operating
Income 7,209 9,510 (2,301) (24.2) %
Operating income (loss)
margin (2) % 1 %
Adjusted Operating
Income margin 6 % 9 %
nm = Not Meaningful
Revenues from Government Services were $4.4 million higher in the Current Quarter. UKSAR revenues were $1.6 million higher primarily due to the commencement of operations at two second-generation UK search and rescue ("UKSAR2G") seasonal bases and increased rates from annual rate escalations. Irish Coast Guard ("IRCG") revenues were $1.5 million higher primarily due to the full-quarter impact of the Waterford base that commenced operations in the Preceding Quarter. Revenues in the U.S. were $1.0 million higher primarily due to higher utilization. Penalties related to aircraft availability, which has been adversely impacted by continued supply chain challenges, have remained elevated in the Current Quarter but were consistent with the Preceding Quarter. Fuel revenues were consistent with the Preceding Quarter, despite increases in global fuel prices, due to contractual lags in rebilling fuel costs under UKSAR2G.
Operating loss was $2.1 million in the Current Quarter compared to operating income of $0.9 million in the Preceding Quarter primarily due to higher operating expenses of $6.1 million, higher depreciation and amortization expense of $0.7 million and higher general and administrative expenses of $0.6 million, partially offset by the higher revenues.
Personnel costs were $3.3 million higher due to the commencement of operations at certain UKSAR2G and IRCG bases, including full quarter impacts of costs that were previously deferred of $1.8 million, increased overtime costs to support the ongoing transitions of $1.0 million and one-time salary adjustments related to a labor agreement in the UK of $0.5 million. Other operating costs related to the ongoing contract transitions in the UK and Ireland were $1.3 million higher, primarily due to increased training, travel between bases, and higher base and facilities costs. Fuel costs were $1.5 million higher due to higher global fuel prices, and while fuel is typically a pass-through, there are delays between when the Company incurs the cost of fuel at prevailing market prices and is then able to recoup the fuel expense under UKSAR2G. Depreciation and amortization expense was higher primarily due to the full quarter impact of a helicopter and other assets placed into service in the Current Quarter for UKSAR2G. The increase in general and administrative expenses was primarily due to higher professional services fees and higher personnel costs.
In summary, the operating income margin in the Current Quarter was adversely impacted by total penalties related to aircraft availability of $3.6 million, fuel expenses in excess of fuel revenues of $1.5 million, and certain transition costs that have persisted beyond the commencement of operations at select bases.
Other Services
Three Months Ended
--------------------------
June 30, March 31, Favorable
($ in thousands) 2026 2026 (Unfavorable)
------------ ------------ --------------------
Revenues $ 37,903 $ 26,502 $ 11,401 43.0 %
Operating income (loss) 2,929 (1,345) 4,274 nm
Adjusted Operating
Income 5,291 1,089 4,202 nm
Operating income (loss)
margin 8 % (5) %
Adjusted Operating
Income margin 14 % 4 %
Revenues from Other Services were $11.4 million higher in the Current Quarter primarily due to higher seasonal utilization and higher fuel revenues. Operating income was $2.9 million in the Current Quarter compared to an operating loss of $1.3 million in the Preceding Quarter, primarily due to the higher seasonal revenues and lower general and administrative expenses of $0.5 million, partially offset by higher operating expenses of $7.7 million related to increased activity and higher fuel prices.
Corporate
Three Months Ended
--------------------------------
June 30, March 31, Favorable
($ in thousands) 2026 2026 (Unfavorable)
--------------- --------------- -----------------------
Corporate:
Total expenses $ 7,399 $ 8,282 $ 883 10.7 %
Gains on disposal
of assets 138 7,639 (7,501) (98.2) %
Operating loss (7,261) (643) (6,618) nm
Consolidated:
Interest income $ 2,870 $ 3,918 $ (1,048) (26.7) %
Interest expense,
net (12,228) (13,816) 1,588 11.5 %
Loss on
extinguishment
of debt -- (2,849) 2,849 nm
Other, net (8,930) (5,353) (3,577) (66.8) %
Income tax
expense (108) (3,510) 3,402 96.9 %
Operating loss was $6.6 million higher in the Current Quarter primarily due to lower net gains on asset dispositions of $7.5 million, partially offset by lower general and administrative expenses of $0.8 million due to lower compensation costs related to lower headcount. During the Current Quarter, the Company sold one AW139 medium helicopter, one AS365 medium helicopter, one fixed wing aircraft and various other assets resulting in net gains of $0.1 million. During the Preceding Quarter, the Company sold two heavy helicopters and various other assets resulting in net gains of $7.6 million.
Interest income was $1.0 million lower primarily due to income earned from U.S. Treasury bill investments on escrowed funds in the Preceding Quarter.
Interest expense was $1.6 million lower primarily due to the concurrent interest expense incurred during the refinancing of the Company's 6.875% Senior Secured Notes in the Preceding Quarter, partially offset by a full quarter of interest expense incurred on the 6.750% Senior Secured Notes.
Loss on extinguishment of debt was $2.8 million in the Preceding Quarter due to the write-off of unamortized deferred financing fees associated with the redemption of the 6.875% Senior Notes.
Other expense, net of $8.9 million in the Current Quarter was primarily due to non-cash foreign exchange losses of $7.7 million and pension-related costs of $1.9 million, partially offset by gains related to insurance claims of $0.7 million. Other expense, net of $5.4 million in the Preceding Quarter was primarily due to non-cash foreign exchange losses.
Income tax expense was $3.4 million lower in the Current Quarter primarily due to higher tax credit utilization in Nigeria.
Affirms Adjusted EBITDA Outlook Range and Updates Segment Outlook
Please refer to the section entitled "Forward-Looking Statements Disclosure" below for further discussion regarding the risks and uncertainties as well as other important information regarding Bristow's guidance. The following guidance contains non-GAAP financial measures. Please read the section entitled "Non-GAAP Financial Measures" for further information.
Select financial outlook for 2026 is as follows (in USD, millions):
2026E
--------------------------------- ---------------
Revenues:
Offshore Energy Services $1,010 - $1,050
Government Services $475 - $495
Other Services $155 - $175
---------------
Total Revenues $1,640 - $1,720
Adjusted Operating Income:
Offshore Energy Services $235 - $245
Government Services $55 - $65
Other Services $25 - $30
Corporate ($35 - $30)
---------------
$280 - $310
Adjusted EBITDA $295 - $325
Cash interest $45
Cash taxes $25 - $30
Maintenance capital expenditures $25 - $30
Capital Allocation and Liquidity
In the Current Quarter, purchases of property and equipment were $67.4 million, of which $6.8 million were maintenance capital expenditures, and cash proceeds from the sale of assets were $5.1 million. In the Preceding Quarter, purchases of property and equipment were $41.3 million, of which $4.4 million were maintenance capital expenditures, and cash proceeds from the sale of assets were $24.9 million.
As of June 30, 2026, the Company had $312.3 million of unrestricted cash and $59.3 million of remaining availability under its asset-based revolving credit facility (the "ABL Facility") for total liquidity of $371.6 million. Borrowings under the ABL Facility are subject to satisfaction of certain terms and conditions.
Net cash provided by operating activities was $41.1 million in the Current Quarter compared to net cash used in operating activities of $8.3 million in the Preceding Quarter. The increase in operating cash flows is primarily due to higher earnings, coupled with a decrease in working capital uses during the Current Quarter.
On July 30, 2026, Bristow declared a dividend of $0.125 per share of common stock, payable on August 28, 2026, to shareholders of record at the close of business on August 14, 2026.
Acquisition of Berry Aviation
On July 13, 2026, the Company completed the acquisition of Berry Aviation Inc. ("Berry Aviation") for $105.0 million, in an all-cash transaction, subject to customary purchase price adjustments. Berry Aviation is expected to add differentiated capabilities that further strengthen the Company's Government Services offering, including special missions, intelligence, surveillance and reconnaissance (ISR) operations, maintenance, repair and overhaul (MRO) services, training and mission support, unmanned aerial systems (UAS) design and development capabilities, and on-demand cargo logistics $(ODC)$. The acquisition is also expected to support a more diversified and balanced business profile.
Conference Call
The Company's management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, August 5, 2026, to review results for the second quarter ended June 30, 2026. The conference call can be accessed using the following link:
Link to Access Earnings Call: https://bristowgroup-2q2026.open-exchange.net
A replay will be available through August 26, 2026 by using the link above. A replay will also be available on the Company's website at www.bristowgroup.com shortly after the call and will be accessible through August 26, 2026. The accompanying investor presentation will be available on August 4, 2026, on Bristow's website at www.bristowgroup.com.
About Bristow Group
Bristow Group Inc. is a leading global provider of mission-critical aviation services for government entities, offshore energy companies and other customers around the world. Our business is comprised of three operating segments: Offshore Energy Services (OES), Government Services and Other Services. Through the use of helicopters, fixed-wing aircraft, unmanned aerial systems (UAS) and highly skilled personnel, we provide aviation services such as personnel transportation, offshore energy logistics, search and rescue $(SAR)$, special missions, intelligence, surveillance and reconnaissance (ISR) operations, maintenance, repair and overhaul (MRO) services, medevac, unmanned systems, on-demand cargo logistics (ODC) and other specialized aviation solutions. We are also involved in various advanced air mobility $(AAM)$ initiatives and emerging next-generation aviation technologies.
Our diversified customer and revenue mix, coupled with our broad geographic footprint, supports a durable and balanced business profile. We currently have a presence in Australia, Benin, Brazil, Canada, Chile, Djibouti, the Dutch Caribbean, the Falkland Islands, Ireland, Kenya, the Marshall Islands, the Netherlands, Nigeria, Norway, the Philippines, Spain, Suriname, Trinidad, the United Kingdom ("UK") and the United States ("U.S .").
Forward-Looking Statements Disclosure
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about our future business, strategy, operations, capabilities and results; financial projections; plans and objectives of our management, including our expectations regarding our quarterly dividend program and our intention to pay down debt; expected actions by us and by third parties, including our customers, competitors, vendors and regulators; and other matters. Some of the forward-looking statements can be identified by the use of words such as "believes," "belief," "forecasts," "expects," "plans," "anticipates," "intends," "projects," "estimates," "may," "might," "will," "would," "could," "should" or other similar words; however, all statements in this press release, other than statements of historical fact or historical financial results, are forward-looking statements. Our forward-looking statements reflect our views and assumptions on the date hereof regarding future events and operating performance. We believe that they are reasonable, but they involve significant known and unknown risks, uncertainties, assumptions and other factors, many of which may be beyond our control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K, and in particular, the risks discussed in Part I, Item 1A, "Risk Factors" of such report and those discussed in other documents we file with the Securities and Exchange Commission (the "SEC"). Accordingly, you should not put undue reliance on any forward-looking statements.
You should consider the following key factors when evaluating these forward-looking statements: the impact of supply chain disruptions, inflation and increased fuel prices and our ability or inability to recoup rising costs in the rates we charge to our customers; our reliance on a limited number of helicopter manufacturers and suppliers and the impact of a shortfall in availability of aircraft components and parts required for maintenance and repairs of our helicopters, including significant delays in the delivery of parts for our S92 and AW189 fleet and aircraft in general; our reliance on a limited number of customers and the reduction of our customer base as a result of consolidation and/or the energy transition; public health crises, such as pandemics and epidemics, and any related government policies and actions; our inability to execute our business strategy for diversification efforts related to government services and advanced air mobility; the potential for cyberattacks or security breaches that could disrupt operations, compromise confidential or sensitive information, damage reputation, expose to legal liability, or cause financial losses; the possibility that we may be unable to maintain compliance with covenants in our financing or other agreements; global and regional changes in the demand, supply, prices or other market conditions affecting oil and gas, including changes resulting from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries ("OPEC") and other producing countries, and geopolitical risks; fluctuations in the demand for our services; the possibility of significant changes in foreign exchange rates and controls; potential effects of increased competition and the introduction of alternative modes of transportation and solutions; the possibility that portions of our fleet may be grounded for extended periods of time or indefinitely (including due to severe weather events); the possibility of political instability, civil unrest, war or acts of terrorism in any of the countries where we operate or elsewhere, including the ongoing conflict in Iran, which could result in operational interruptions and supply impacts, including fuel shortages and price increases; the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; the existence of operating risks inherent in our business, including the possibility of declining safety performance; labor issues, including our inability to negotiate acceptable collective bargaining or union agreements with employees covered by such agreements; the possibility of changes in tax, environmental, trade, immigration and other laws and regulations and policies, including, without limitation, tariffs and actions of the governments that impact the aviation industry, oil and gas operations, favor renewable energy projects or address climate change; any failure to effectively manage, and receive anticipated returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions; the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket; the possibility that we may impair our long-lived assets and other assets, including inventory, property and equipment and investments in unconsolidated affiliates; general economic conditions, including interest rates or uncertainty in the capital and credit markets; disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between the United States ("U.S.") and other countries; the potential effects of any future U.S. government shutdown on our Government Services business; the possibility that reductions in spending on aviation services by governmental agencies where we are seeking contracts could adversely affect or lead to modifications of the procurement process or that such reductions in spending could adversely affect Government Services contract terms or otherwise delay service or the receipt of payments under such contracts; and the effectiveness of our environmental, social and governance initiatives.
The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. All forward-looking statements in this press release are qualified by these cautionary statements and are only made as of the date hereof. The forward-looking statements in this press release should be evaluated together with the many uncertainties that affect our businesses, particularly those discussed in greater detail in Part I, Item 1A, "Risk Factors" and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K and Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Part II, Item 1A, "Risk Factors" of the Company's subsequent Quarterly Reports on Form 10-Q. We disclaim any obligation or undertaking, other than as required by law, to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, whether as a result of new information, future events or otherwise.
BRISTOW GROUP INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Three Months Ended
---------------------------------- ----------------
June 30, March 31, Favorable/
2026 2026 (Unfavorable)
---------------- ---------------- ----------------
Total revenues $ 411,755 $ 388,705 $ 23,050
Costs and expenses:
Operating expenses
Personnel 101,193 103,569 2,376
Repairs and
maintenance 60,561 68,569 8,008
Insurance 5,968 6,597 629
Fuel 33,328 20,146 (13,182)
Leased-in equipment 28,865 28,549 (316)
Other 73,013 66,107 (6,906)
---------------- ---------------- ----------------
Total operating
expenses 302,928 293,537 (9,391)
General and
administrative
expenses 43,225 44,252 1,027
Depreciation and
amortization
expense 28,889 24,386 (4,503)
---------------- ---------------- ----------------
Total costs and
expenses 375,042 362,175 (12,867)
Gains on disposal of
assets 138 7,639 (7,501)
Earnings from
unconsolidated
affiliates 2,725 506 2,219
---------------- ---------------- ----------------
Operating income 39,576 34,675 4,901
Interest income 2,870 3,918 (1,048)
Interest expense,
net (12,228) (13,816) 1,588
Loss on
extinguishment of
debt -- (2,849) 2,849
Other, net (8,930) (5,353) (3,577)
---------------- ---------------- ----------------
Total other
income
(expense), net (18,288) (18,100) (188)
---------------- ---------------- ----------------
Income before
income taxes 21,288 16,575 4,713
Income tax expense (108) (3,510) 3,402
---------------- ---------------- ----------------
Net income 21,180 13,065 8,115
Net loss (income)
attributable to
noncontrolling
interests (26) 41 (67)
---------------- ---------------- ----------------
Net income
attributable to
Bristow Group
Inc. $ 21,154 $ 13,106 $ 8,048
================ ================ ================
Basic earnings per
common share $ 0.71 $ 0.45
Diluted earnings per
common share $ 0.70 $ 0.44
Weighted average
common shares
outstanding, basic 29,616 29,254
Weighted average
common shares
outstanding,
diluted 30,011 30,062
Adjusted Operating
Income $ 71,894 $ 52,853 $ 19,041
EBITDA $ 62,405 $ 54,777 $ 7,628
Adjusted EBITDA $ 79,808 $ 59,275 $ 20,533
BRISTOW GROUP INC.
REVENUES BY SEGMENT
(unaudited, in thousands)
Three Months Ended
------------------------------- ---------
June 30, March 31, Favorable
2026 2026 (Unfavorable)
--------------- -------------- ------------------
Offshore Energy
Services:
Europe $ 104,566 $ 98,651 $ 5,915 6.0 %
Americas 106,619 105,399 1,220 1.2 %
Africa 50,433 50,283 150 0.3 %
--------------- -------------- ---------
Total Offshore
Energy Services $ 261,618 $ 254,333 $ 7,285 2.9 %
Government Services 112,234 107,870 4,364 4.0 %
Other Services 37,903 26,502 11,401 43.0 %
--------------- -------------- ---------
$ 411,755 $ 388,705 $ 23,050 5.9 %
=============== ============== =========
FLIGHT HOURS BY SEGMENT
(unaudited)
Three Months Ended
------------------------------- ---------
June 30, March 31, Favorable
2026 2026 (Unfavorable)
--------------- -------------- ------------------
Offshore Energy
Services:
Europe 7,658 8,217 (559) (6.8) %
Americas 10,112 10,470 (358) (3.4) %
Africa 5,288 5,545 (257) (4.6) %
--------------- -------------- ---------
Total Offshore
Energy Services 23,058 24,232 (1,174) (4.8) %
Government Services 4,620 4,051 569 14.0 %
Other Services 3,697 3,337 360 10.8 %
--------------- -------------- ---------
31,375 31,620 (245) (0.8) %
=============== ============== =========
BRISTOW GROUP INC.
Second Quarter Segment Statements of Operations
(unaudited, in thousands)
Offshore
Energy Government Other
Services Services Services Corporate Consolidated
------------- -------------- -------------- -------------- --------------
Three Months
Ended June 30,
2026
Revenues $ 261,618 $ 112,234 $ 37,903 $ -- $ 411,755
Less:
Personnel 57,102 35,967 8,124 -- 101,193
Repairs and
maintenance 42,746 14,081 3,734 -- 60,561
Insurance 3,855 1,788 325 -- 5,968
Fuel 19,517 4,343 9,468 -- 33,328
Leased-in
equipment 16,515 10,607 1,743 -- 28,865
Other segment
costs 38,424 26,851 7,775 -- 73,050
------------- -------------- -------------- -------------- --------------
Total
operating
expenses 178,159 93,637 31,169 -- 302,965
General and
administrative
expenses 23,033 11,552 1,460 7,143 43,188
Depreciation
and
amortization
expense 17,098 9,190 2,345 256 28,889
------------- -------------- -------------- -------------- --------------
Total costs
and
expenses 218,290 114,379 34,974 7,399 375,042
Gains on
disposal of
assets -- -- -- 138 138
Earnings from
unconsolidated
affiliates 2,725 -- -- -- 2,725
------------- -------------- -------------- -------------- --------------
Operating
income
(loss) $ 46,053 $ (2,145) $ 2,929 $ (7,261) $ 39,576
Non-GAAP(1) :
Depreciation
and
amortization
expense 17,098 9,190 2,345 256 28,889
PBH
amortization 3,386 164 17 -- 3,567
Gains on
disposal of
assets -- -- -- (138) (138)
------------- -------------- -------------- -------------- --------------
Adjusted
Operating
Income
(Loss) $ 66,537 $ 7,209 $ 5,291 $ (7,143) $ 71,894
------------- -------------- -------------- -------------- --------------
Offshore
Energy Government Other
Services Services Services Corporate Consolidated
------------- -------------- -------------- -------------- --------------
Three Months
Ended March 31,
2026
Revenues $ 254,333 $ 107,870 $ 26,502 $ -- $ 388,705
Less:
Personnel 63,360 32,626 7,583 -- 103,569
Repairs and
maintenance 50,581 14,572 3,416 -- 68,569
Insurance 3,968 2,316 313 -- 6,597
Fuel 12,974 2,817 4,355 -- 20,146
Leased-in
equipment 16,641 10,100 1,808 -- 28,549
Other segment
costs 34,980 25,097 5,993 -- 66,070
------------- -------------- -------------- -------------- --------------
Total
operating
expenses 182,504 87,528 23,468 -- 293,500
General and
administrative
expenses 23,484 10,922 1,981 7,902 44,289
Depreciation
and
amortization
expense 13,131 8,477 2,398 380 24,386
------------- -------------- -------------- -------------- --------------
Total costs
and
expenses 219,119 106,927 27,847 8,282 362,175
Gains on
disposal of
assets -- -- -- 7,639 7,639
Earnings from
unconsolidated
affiliates 506 -- -- -- 506
------------- -------------- -------------- -------------- --------------
Operating
income
(loss) $ 35,720 $ 943 $ (1,345) $ (643) $ 34,675
Non-GAAP(1) :
Depreciation
and
amortization
expense 13,131 8,477 2,398 380 24,386
PBH
amortization 1,305 90 36 -- 1,431
Gains on
disposal of
assets -- -- -- (7,639) (7,639)
------------- -------------- -------------- -------------- --------------
Adjusted
Operating
Income
(Loss) $ 50,156 $ 9,510 $ 1,089 $ (7,902) $ 52,853
------------- -------------- -------------- -------------- --------------
(1) See definitions of these non-GAAP financial measures and the
reconciliation of GAAP to non-GAAP financial measures in the Non-GAAP
Financial Measures section further below.
BRISTOW GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
June 30, December 31,
2026 2025
---------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 314,752 $ 293,631
Accounts receivable, net 246,299 217,102
Inventories 137,167 132,727
Prepaid expenses and other current
assets 56,289 50,828
---------------- ----------------
Total current assets 754,507 694,288
Property and equipment, net 1,183,721 1,152,668
Investment in unconsolidated affiliates 24,584 23,852
Right-of-use assets 225,400 241,666
Other assets 194,361 198,787
---------------- ----------------
Total assets $ 2,382,573 $ 2,311,261
---------------- ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 76,493 $ 86,286
Accrued wages, benefits and related
taxes 53,396 68,654
Income taxes payable and other accrued
taxes 15,490 22,759
Deferred revenue 30,175 22,440
Accrued maintenance and repairs 26,516 28,793
Current portion of operating lease
liabilities 68,369 77,038
Accrued interest and other accrued
liabilities 36,038 31,317
Current maturities of long-term debt 27,419 27,943
---------------- ----------------
Total current liabilities 333,896 365,230
Long-term debt, less current maturities 718,061 643,511
Other liabilities and deferred credits 40,711 31,782
Deferred taxes 44,839 46,571
Long-term operating lease liabilities 155,898 164,544
---------------- ----------------
Total liabilities 1,293,405 1,251,638
---------------- ----------------
Stockholders' equity:
Common stock 332 325
Additional paid-in capital 771,022 762,520
Retained earnings 468,366 441,739
Treasury stock, at cost (98,165) (87,129)
Accumulated other comprehensive loss (52,290) (57,750)
---------------- ----------------
Total Bristow Group Inc.
stockholders' equity 1,089,265 1,059,705
Noncontrolling interests (97) (82)
---------------- ----------------
Total stockholders' equity 1,089,168 1,059,623
---------------- ----------------
Total liabilities and stockholders'
equity $ 2,382,573 $ 2,311,261
---------------- ----------------
Non-GAAP Financial Measures
The Company's management uses EBITDA, Adjusted EBITDA and Adjusted Operating Income to assess the performance and operating results of its business. Each of these measures, as well as Free Cash Flow and Adjusted Free Cash Flow, each as detailed below, are non-GAAP measures, have limitations, and are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in the Company's financial statements prepared in accordance with generally accepted accounting principles in the United States ("GAAP") (including the notes), included in the Company's filings with the SEC and posted on the Company's website.
EBITDA and Adjusted EBITDA
EBITDA is defined as Earnings before Interest expense, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for non-cash gains and losses on the sale of assets, non-cash foreign exchange gains (losses) related to the revaluation of certain balance sheet items, and certain special items that occurred during the reported period, such as the amortization of PBH maintenance agreements that are non-cash within the period, gains on insurance claims, non-cash nonrecurring insurance adjustments and other special items which include professional service fees related to unusual litigation proceedings and other nonrecurring costs related to strategic activities. The professional services fees are primarily attorneys' fees related to litigation and arbitration matters that the Company is pursuing (where no gain contingency has been recorded or identified) that are unusual in nature and outside of the normal course of the Company's continuing business operations. The other nonrecurring costs primarily related to strategic activities are costs associated with financing transactions and proposed mergers and acquisitions ("M&A") transactions. These special items are related to various pursuits that are not individually material to the Company and, as such, are aggregated for presentation. The Company views these matters and their related financial impacts on the Company's operating performance as extraordinary and not reflective of the operational performance of the Company's core business activities. In addition, the same costs are not reasonably likely to recur within two years nor have the same charges or gains occurred within the prior two years. The Company includes EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of its operating performance. Management believes that the use of EBITDA and Adjusted EBITDA is meaningful to investors because it provides information with respect to the Company's ability to meet its future debt service, capital expenditures and working capital requirements and the financial performance of the Company's assets without regard to financing methods, capital structure or historical cost basis. Neither EBITDA nor Adjusted EBITDA is a recognized term under GAAP. Accordingly, they should not be used as an indicator of, or an alternative to, net income the most directly comparable GAAP measure, as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definitions of EBITDA and Adjusted EBITDA (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies.
The following tables provide a reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (unaudited, in thousands).
Three Months Ended
June 30, March 31, December 31, September 30,
2026 2026 2025 2025 LTM
---------------- ---------------- ---------------- ---------------- --------------
Net income $ 21,180 $ 13,065 $ 18,676 $ 51,591 $ 104,512
Depreciation
and
amortization
expense 28,889 24,386 18,377 17,739 89,391
Interest
expense, net 12,228 13,816 10,432 9,962 46,438
Income tax
expense
(benefit) 108 3,510 3,026 (11,843) (5,199)
---------------- ---------------- ---------------- ---------------- --------------
EBITDA $ 62,405 $ 54,777 $ 50,511 $ 67,449 $ 235,142
(Gains) losses
on disposal of
assets (138) (7,639) 2,111 (8,245) (13,911)
Loss on
extinguishment
of debt -- 2,849 -- -- 2,849
Foreign
exchange
losses 7,673 4,554 3,051 2,946 18,224
Special
items(1) 9,868 4,734 4,455 4,947 24,004
---------------- ---------------- ---------------- ---------------- --------------
Adjusted EBITDA $ 79,808 $ 59,275 $ 60,128 $ 67,097 $ 266,308
================ ================ ================ ================ ==============
(1) Special items include the following:
Three Months Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30,
2026 2026 2025 2025 LTM
---------------- ---------------- ---------------- ---------------- --------------
PBH
amortization $ 3,567 $ 1,431 $ 2,232 $ 2,172 $ 9,402
Gain on
insurance
claim (714) -- (4,970) -- (5,684)
IT System
transition
costs 229 -- -- -- 229
Other special
items 6,786 3,303 7,193 2,775 20,057
---------------- ---------------- ---------------- ---------------- --------------
$ 9,868 $ 4,734 $ 4,455 $ 4,947 $ 24,004
================ ================ ================ ================ ==============
The Company is unable to provide a reconciliation of projected Adjusted EBITDA (non-GAAP) for the outlook periods included in this release to projected net income (GAAP) for the same periods because components of the calculation are inherently unpredictable. The inability to forecast certain components of the calculation would significantly affect the accuracy of the reconciliation. Additionally, the Company does not provide guidance on the items used to reconcile projected Adjusted EBITDA due to the uncertainty regarding timing and estimates of such items. Therefore, the Company does not present a reconciliation of projected Adjusted EBITDA (non-GAAP) to net income (GAAP) for the outlook periods.
Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow represents the Company's net cash provided by (used in) operating activities less maintenance capital expenditures. Adjusted Free Cash Flow is Free Cash Flow adjusted to exclude costs paid in relation to certain special items which primarily include (i) professional service fees related to unusual litigation proceedings and (ii) other nonrecurring costs related to strategic activities. The professional services fees are primarily attorneys' fees related to unusual litigation and arbitration matters that the Company is pursuing (where no gain contingency has been recorded or identified) that are unusual in nature and outside of the normal course of the Company's continuing business operations. The other nonrecurring costs related to strategic activities are costs associated with financing transactions and proposed M&A transactions. These special items are related to various pursuits that are not individually material to the Company and, as such, are aggregated for presentation. The Company views these matters and their related financial impacts on the Company's operating performance as extraordinary and not reflective of the operational performance of the Company's core business activities. In addition, the same costs are not reasonably likely to recur within two years nor have the same charges or gains occurred within the prior two years. Management believes that Free Cash Flow and Adjusted Free Cash Flow are meaningful to investors because they provide information with respect to the Company's ability to generate cash from the business. Neither Free Cash Flow nor Adjusted Free Cash Flow is a recognized term under GAAP. Accordingly, these measures should not be used as an indicator of, or an alternative to, net cash provided by operating activities, the most directly comparable GAAP measure. Investors should note numerous methods may exist for calculating a company's free cash flow. As a result, the method used by management to calculate Free Cash Flow and Adjusted Free Cash Flow may differ from the methods used by other companies to calculate their free cash flow. As such, they may not be comparable to other similarly titled measures used by other companies. The following table provides a reconciliation of net cash provided by (used in) operating activities, the most directly comparable GAAP measure, to Free Cash Flow and Adjusted Free Cash Flow (unaudited, in thousands).
Three Months Ended
-------------------------------------------------------------------
June 30, March 31, December 31, September 30,
2026 2026 2025 2025 LTM
--------------- ---------------- --------------- --------------- ---------------
Net cash
provided by
(used in)
operating
activities $ 41,076 $ (8,250) $ 76,913 $ 23,057 $ 132,796
Less:
Maintenance
capital
expenditures (6,791) (4,359) (6,044) (2,800) (19,994)
--------------- ---------------- --------------- --------------- ---------------
Free Cash
Flow $ 34,285 $ (12,609) $ 70,869 $ 20,257 $ 112,802
Plus: Special
items 1,522 843 883 1,108 4,356
--------------- ---------------- --------------- --------------- ---------------
Adjusted
Free Cash
Flow $ 35,807 $ (11,766) $ 71,752 $ 21,365 $ 117,158
=============== ================ =============== =============== ===============
Adjusted Operating Income by Segment
Adjusted Operating Income (Loss) ("Adjusted Operating Income") is defined as operating income (loss) before depreciation and amortization (including PBH amortization) and gains or losses on asset dispositions that occurred during the reported period. The Company includes Adjusted Operating Income to provide investors with a supplemental measure of each segment's operating performance. Management believes that the use of Adjusted Operating Income is meaningful to investors because it provides information with respect to each segment's ability to generate cash from its operations. Adjusted Operating Income is not a recognized term under GAAP. Accordingly, this measure should not be used as an indicator of, or an alternative to, operating income (loss), the most directly comparable GAAP measure, as a measure of operating performance. Because the definition of Adjusted Operating Income (or similar measures) may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies.
The following table provides a reconciliation of operating income (loss), the most directly comparable GAAP measure, to Adjusted Operating Income for each segment and Corporate (unaudited, in thousands).
Three Months Ended
---------------------------------- ---------
June 30, March 31, Increase
2026 2026 (Decrease)
---------------- ---------------- -------------------
Offshore Energy
Services:
Operating income $ 46,053 $ 35,720 $ 10,333 28.9 %
Depreciation and
amortization
expense 17,098 13,131 3,967 30.2 %
PBH amortization 3,386 1,305 2,081 nm
---------------- ---------------- ---------
Offshore Energy
Services
Adjusted
Operating
Income $ 66,537 $ 50,156 $ 16,381 32.7 %
Government
Services:
Operating income
(loss) $ (2,145) $ 943 $ (3,088) nm
Depreciation and
amortization
expense 9,190 8,477 713 8.4 %
PBH amortization 164 90 74 82.2 %
---------------- ---------------- ---------
Government
Services
Adjusted
Operating
Income $ 7,209 $ 9,510 $ (2,301) (24.2) %
Other Services:
Operating income
(loss) $ 2,929 $ (1,345) $ 4,274 nm
Depreciation and
amortization
expense 2,345 2,398 (53) (2.2) %
PBH amortization 17 36 (19) (52.8) %
---------------- ---------------- ---------
Other Services
Adjusted
Operating
Income $ 5,291 $ 1,089 $ 4,202 nm
Total Segment
Adjusted
Operating
Income $ 79,037 $ 60,755 $ 18,282 30.1 %
Corporate:
Operating loss $ (7,261) $ (643) $ (6,618) nm
Depreciation and
amortization
expense 256 380 (124) (32.6) %
Gains on
disposal of
assets (138) (7,639) 7,501 98.2 %
---------------- ---------------- ---------
Corporate
Adjusted
Operating Loss $ (7,143) $ (7,902) $ 759 9.6 %
Consolidated
Adjusted
Operating
Income $ 71,894 $ 52,853 $ 19,041 36.0 %
================ ================ =========
BRISTOW GROUP INC.
FLEET COUNT
Number of Aircraft
-------------------------------
Maximum Average
Owned Leased Total Passenger Age
Type Aircraft Aircraft Aircraft Capacity (years)(1)
-------------- --------- --------- --------- --------- ----------
Heavy
Helicopters:
S92 32 28 60 19 16
AW189 25 5 30 16 8
--------- --------- ---------
57 33 90
Medium
Helicopters:
AW139 47 9 56 12 14
S76 D/C++ 12 -- 12 12 14
H160 -- 4 4 12 --
--------- --------- ---------
59 13 72
Light--Twin
Engine
Helicopters:
AW109 3 -- 3 7 19
H135 12 -- 12 6 10
--------- --------- ---------
15 -- 15
Light--Single
Engine
Helicopters:
AS350 12 -- 12 4 27
AW119 13 -- 13 7 20
--------- --------- ---------
25 -- 25
--------- --------- ---------
Total
Helicopters 156 46 202 14
--------- --------- ---------
Fixed Wing 8 5 13
Unmanned
Aerial
Systems
("UAS") 3 -- 3
--------- --------- ---------
Total Fleet(2) 167 51 218
========= ========= =========
(1) Reflects the average age of helicopters that are owned by the Company.
(2) Does not include certain aircraft shown in the under construction line in
the segment fleet table below. Upon completion of additional
configuration, the newly-delivered aircraft will appear in the fleet
table above when placed into service.
The table below presents the number of aircraft in our fleet as of June 30, 2026, their distribution among the segments through which we operate, as a percentage of total revenues for the three months ended June 30, 2026, and the number of aircraft not yet reflected in our fleet as they were on order or under construction as of June 30, 2026.
Helicopters
---------- ----------------------------- ----- ---
Percentage
of Total Light Light Fixed
Revenues Heavy Medium Twin Single Wing UAS Total
---------- ----- ------ ----- ------- ----- --- -----
Offshore Energy
Services 65 % 59 62 12 -- -- -- 133
Government Services 27 % 31 10 3 20 -- 3 67
Other Services 8 % -- -- -- 5 13 -- 18
---------- ----- ------ ----- ------- ----- --- -----
Total 100 % 90 72 15 25 13 3 218
========== ===== ====== ===== ======= ===== === =====
Aircraft not
currently in fleet:
Under
construction(1)(3) 4 -- -- -- -- -- 4
Options(2) 9 -- 6 -- -- -- 15
(1) Under construction reflects new aircraft that the Company has either
taken possession of and are undergoing additional configuration before
being placed into service or are currently under construction by the
Original Equipment Manufacturer ("OEM") and pending delivery. Includes
four AW189 heavy helicopters (of which one was delivered and is
undergoing additional configuration).
(2) Options include nine AW189 heavy helicopters and six H135 light-twin
helicopters.
(3) Excludes leased aircraft in the Company's possession but not yet placed
in service and any orders or options for electric/hybrid vertical takeoff
and landing and short takeoff and landing aircraft, collectively known as
Advanced Air Mobility ("AAM") aircraft, that may have deposits but are
pending regulatory certification.
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SOURCE Bristow Group